Fourteen high-powered sales strategies by and for independents
By Gordon Hecht, YSN Contributor
When independent dealers get together, there’s more than just talk about grandkids and sports.
Sure, there’s plenty of that too. But dealers are also eager to share their best business practices.
More than vague notions, their tactics are proven sales, margin or profit generators. The concepts keep their shops relevant, even in a difficult retail environment. Most can be executed with little or no extra cost to how you are operating your business today.
Here are 14 great sales strategies, generously shared by your peers.
Gift Card with Purchase
A $100 store gift card giveaway is perfect for furniture and appliance shops. Instead of dangerously reducing margins with price discounts, this dealer knows that shoppers have multiple merchandise needs. They keep the bucks in-house with allowances on other merchandise in their store.
Local Sponsorships
The old sitcom “Cheers” was a place where everyone knew your name. This dealer sponsors Little League, auto racing and other community events. His name is everywhere — especially on shoppers’ lists when they plan to buy.
Video Clips
A picture is worth a thousand words but a video tells a story. Winning dealers create short, homegrown videos on their iPads or phones and post them daily to Facebook and Instagram. It’s a quick and inexpensive way to tout today’s hot buy or some other promo.
Charging for Extras
This retailer knows that when someone gets something for nothing, someone else gets nothing for something. They have added beaucoup bucks to the bottom line just by collecting delivery and disposal costs and attaching key accessories.
Cover Your Costs
Your next shopper may believe there are $900 dollars of margin in a $1,000 mattress. They don’t add in the cost of your building, insurance, trucks, employees or the delight you take in paying taxes! One dealer told us they add a fixed overhead percentage to the merchandise cost before figuring retail margin.
This simple tactic helps them manage cash flow, reduces discounting and builds profitability.
Don’t Go it Alone
The new world of digital advertising seems to change every day. Many dealers have decided against trying to conquer the metaverse all by themselves. They hired experts in the realms of Google, SEM and SEO.
But you don’t necessarily need to add another person to your payroll. Look no further than AVB Marketing, BrandSource’s in-house digital media mavens. Let them do their magic! They can manage your account and turn on a dime, leaving you to do what you do best.
Don’t Chase the Low End
Here’s something you can figure without a calculator: You make more money from one $3,999 sale than 10 $399 sales. Operational costs drop and margins are better on high-end goods.
One dealer who exited from promoting lower-end merchandise said he can step up his service level, reduce delivery and warehouse costs and maintain a steady retail volume.
Start at the Top
It seems that almost every shopper wants to play “Let’s Make A Deal” when it comes to your price tags. One dealer we spoke to shared his way of covering that issue: If price is an issue, he doesn’t lower it.
Instead, he introduces shoppers to the next model down. They compare features and benefits, building value into both product levels. Most of the time shoppers purchase the original higher-priced item. Other shoppers choose the lower price. Either way, you win.
Sign Up Sign Walkers
A common theme we hear is that footfalls are down. Fewer warm bodies are walking into shops.
Old school can be the best school. A retailer shared with us that his store employs a sign walker, dressed in costume, carrying promotional signage. The result is a few more shoppers cross the threshold, and that results in more sales. The truth is, sign walkers attract attention and build traffic.
How’m I doin’?
I’ve eaten at cheap buffets because they had five stars on Google. But only two were colored in.
Google reviews are important. People use them to judge your store. And more is better, especially when they are four and five stars. But multi-star retailers know they don’t have time to chase reviews. So they employ a text message service to recruit shoppers and buyers for a quick rating.
Never On a Sunday?
Many stores have opted to close on Sunday. That works great for a family day and can help with scheduling and retaining staff.
One dealer from the Midwest is closed 50 Sundays a year. But twice annually they promote a huge Four-Hour Sale. It takes a lot of prep. They reach out to former customers, prospects, friends, family — anyone who needs their merchandise. Food, fun and a party atmosphere is required. The net result? Two weeks’ worth of normal sales in less than one full day.
Hire an Email Service
Do you have 30,000 email addresses of people interested in home furnishings?
If not, follow the advice of one dealer and seek out a service that can manage your messaging. LocalIQ and Tango Media can send your high-impact promotion to an audience the size of a medium city. And it’s not just tossing it out on the ocean. These are qualified leads. You can be top of mind with less than 72 hours’ notice.
Best of all, the services can track your return on investment. They can help you determine who got the message and who made a purchase.
Customer Referral Cards
Word-of-mouth advertising used to mean a couple of neighbors chatting over a fence. Now it means calls, texts, Facebook, Instagram and more.
Chances are good that each buying customer has a network of 200 friends, family and co-workers. Why not pay them to share their fine experience with your products and service?
One Southern-based dealer maintains an active customer referral program. When a purchase is made based on a customer referral, he rewards the original customer with a check or gift card to a local restaurant. It’s 10% of purchase price, up to $100.
It works so well that some customers refer multiple shoppers. And wouldn’t you trade a $100 Starbucks card for a $2,000 purchase right now?
The Free Menu
Your shoppers want it all! Free delivery, free pillows, free bedframe, free haul-away. Our final retailer recommendation is to put all the choices on a “Free Menu” and let your customer pick the complimentary option they want. This strategy cuts down on the amount of free stuff, but still lets the customer win.
You can create your own Free Menu. Add some spice by offering additional free stuff at higher price levels. Spend $300-$999 for one free choice, while a purchase of $1,000-$2,499 gets them two free picks. And on from there.
So, how are the grandkids?
Gordon Hecht is a consultant to the home furnishings trade with over four decades in retail and manufacturing and more than 500 industry newsletters and articles under his belt. His award-winning experience includes tenured time with Ashley Furniture Industries and Serta Simmons Bedding, with progressive responsibility for large and small retailers. Gordon can be reached at gordon.hecht@aol.com.
